Smartphone Market and Consumer Behavior

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Table of Contents

Size of market
Description of the product category
Pricing
Distribution
Promotion
Consumer behavior
References

Smartphone Technology is one of the best innovations developed by the human race in the world today. The ability to improve communication, entertainment, and online education by using smartphones is a milestone in the development of the world. The world has utilized and enjoyed this technology and is looking forward to improving its innovation to fit the high demands as a result of using this technology.

Size of market

These phones have taken the market by storm since their introduction. The number of smartphones shipped in 2011 was 207 million. This is a significant number especially if you consider the 507 million smartphones installed base reached. The shipped smartphones raised $110 billion in revenue that is a very clear indication of its position in the market today. Looking at individual brands, Apple smartphones and their operating systems lead the way in the most consumed products. It constitutes approximately 55% of the market share and we expect it to encounter very stiff competition from other smartphones like android and blackberry (Gookin 111). The revenue raised from all smartphones was more than that of ordinary phones for the first time.

Description of the product category

The smartphone has more complex features than other normal phones. The most common features include Basic communicative functions like voice calls and SMS services. They also have multimedia and entertainment features like watching movies and playing games on top of work-related functions like emails and surfing the web. They have many complex components like RAM, LCM and touch panel, wireless transmission module among others. Series 60 by Nokia and Windows mobile for smartphones by MS are the two major platforms for smartphones. The most common operating systems used in smartphones are Windows OS, Android, palm, RIM, Symbian, and WM.

Pricing

Blackberry and iPhone models are among the most expensive category of smartphones. However, there are many models of smartphones, which are less expensive. For example, one spends about $160 per month in owning and operating the iPhone, compared to $110 per month to have other cheap alternatives of a smartphone like T-Mobile. It is also worthy to note that developing countries find it expensive to purchase or use the iPhones to their maximum. For example in Kenya, the iPhone costs around $ 500 on purchase in addition to other charges on the operation. This explains why we have few smartphones in developing countries.

Distribution

From the above figures, we can conclude that the distribution of smartphones is lower in African countries and the greatest in America. Europe and Asia are behind America while the Middle East and Africa are the worst in the use of smartphones. Cohn (2012) says that Americans have really adopted smartphones which typifies their way of life. The 2011 shipment indicates 25% of smartphones for America, 21% of shipment to Europe, and 18% of smartphone shipment to Africa. The USA, UK, Russia, and Canada lead the world in the country category of smartphone possession. China, Japan, and India have the least phones.

Promotion

Smartphone companies have done well in promoting their products. Some companies have engaged in negotiations with respective governments to reduce the levy on these phones to make them available to their citizens. This aims at increasing their market share. A good example is Kenya where the cheapest Android phone costs approximately $60 that most citizens can afford. Various promotions are used on these phones. The marketing methods employed are successful in promoting the distribution of these precious electronics. The promotions have indicated a positive response. This is a high achievement in this area.

Smartphones have several strengths compared to other phones. They keep an individual in a regular voice and email communication. This ensures that the message from the sender reaches the recipients in time. As a result, they take the required action in time. There is also regular access to schedules and calendars, which acts as reminders to its users (Cohn 122). It is expensive to buy a smartphone. As a result, there is a poor market for these phones. Their complex applications highlight the need to train users on some applications. Their billing rates can also be alarming since they require so many expenses in order to support some applications.

Smartphones have so many opportunities in the market today (Porter 153). They have replaced personal digital assistants and allowed the use of maps like Google maps in traveling. There are some additional features to support distance learning and e-learning among others. They have the ability to support thousands of useful applications in life. Therefore, they can offer more than they currently do.

Consumer behavior

These phones have numerous challenges. They can be exposed to harsh weather conditions, poor handling, and theft. Theft is the biggest challenge owing to their high prices. It is disappointing to spend thousands of dollars on an item and lose it after a short while (Cambridge 112). The consumers of smartphones are luxurious. They value phones with many features even if they do not use all features provided. They are dependent on their phones for applications like reminders, emails, games, and video and audio streaming. They also value voice clarity that makes them different from the users of ordinary phones.

References

Cambridge D. (2012). How NOT To Use Your Smartphone. Cambridge: Rodney D. Cambridge.

Cohn R. (2012). Smartphones. Washington: VSD.

Gookin D. (2012) Android Phones For Dummies.New Zealand: For Dummies.

Porter, M. (1998). Competitive Advantage: Creating and Sustaining Superior Performance. Massachusetts: Free Press.

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